There will come a time in the life of your business when you need an expert perspective that only exists within your immediate team. An advisory board or group can provide that expertise.
But it’s important to understand what you’re getting into before enlisting an advisor.
Mentorship
Whether it’s a CMO who can coach you on marketing or a lawyer who can help you navigate legal challenges, advisors complement the skills you and your team lack. Recruiting them requires commitment and equity, but they can eliminate countless mistakes that would otherwise be fatal to your startup.
Canopy advisory group can provide high-level strategic advice that you can’t get from employees or customers, and they can help you stay on track to your goals. In a recent study, BDC found that entrepreneurs with an advisory board report 24% higher annual sales than those without. That’s a substantial return on investment! Advisory groups are also a great way to connect with like-minded people and find future co-founders.
Guidance
Often, advisory boards provide a forum for entrepreneurs to bounce ideas off. It helps them to determine whether a particular strategy or tactic will help the business grow. It also gives them a clearer picture of the company’s strengths and weaknesses, which can be a valuable perspective.
Many advisory boards or groups are made up of professionals with a wide variety of experience in their field and varying backgrounds. It gives them the ability to give insight into various aspects of the company, such as marketing and financial strategies.
However, it is important to remember that advisors donate their time and juggle multiple projects. As a result, entrepreneurs must manage their advisory boards effectively. It includes scheduling meetings, sending regular emails, and properly compensating all advisory members.
Advice
With prior experience, advisors can eliminate countless mistakes that could prove fatal for any startup. Their knowledge and advice can help businesses grow faster, access new markets, and gain the insight to manage risk.
While some business owners hesitate to enlist advisory boards, assuming they may lose control of key decisions or overall company ownership, that’s rarely the case. Advisory boards merely advise, leaving legal business control to the owner(s).
A regular cadence for core interactions is recommended to maximize an advisory network’s value. It also suggests preparing brief write-ups to accompany every meeting or call with an advisor to provide context. It reduces friction and allows founders to spend their time creating value.
Networking
Aside from providing business advice, advisory groups are a great way to network. Meetings often occur in public spaces, such as restaurants and coffee shops, and attendees are typically open to anyone wanting to participate. This type of networking is essential for entrepreneurs looking to find investors or potential business partners.
Entrepreneurs can also join online communities. These communities provide an opportunity to meet other entrepreneurs, discuss business-related topics, and collaborate on projects.
While entrepreneurs need to network, they must be strategic about their approach. One of the best ways to do this is by joining an advisory group focusing on high-level strategy and providing objective feedback. When selecting members, choose people who have experienced success and failure in business.
Collaboration
You can benefit from outside perspectives and experiences when starting a new business. Having a group of advisors who share your passion and drive for success can motivate you to pursue your goals aggressively.
Collaboration is also essential to reaching your startup’s goals. It increases communication amongst teams, and it helps to solve problems and reach major milestones.
As a bonus, your advisory board members can become lifelong friends. It is essential for entrepreneurs seeking to build a strong, supportive network. An online board portal can help streamline the collaborative process for you and your team. It allows you to poll your advisory board for the best meeting times and sync with their calendars.
